Amid Lowell theft probe, councilor calls for scrap-metal policy

By Lyle Moran, lmoran@lowellsun.com

Updated:
03/09/2013 07:09:23 AM EST

LOWELL -- In light of the city's ongoing investigation into alleged scrap-metal thefts at the Lowell Regional Water Utility, City Councilor Ed Kennedy is calling for the city administration to establish a policy for the proper handling and disposal of scrap metal by utility employees.

Kennedy said he wants a policy that outlines the proper procedure for what is done with scrap metal at the utility to ensure there are no thefts of material belonging to the city.

"There have been other departments right here in City Hall in recent years where there have been thefts and procedures were put in place to make sure that did not continue to occur, so that is what I would be looking for in terms of the scrap metal," Kennedy told City Manager Bernie Lynch at Tuesday's City Council meeting.

Other city departments that have adopted new policies after thefts include the City Clerk's Office and the Parking Department.

Kennedy said a scrap-metal policy for the Water Department should also help assure the public the city takes seriously the scrap-metal allegations.

"I think it is important to have because it is proper, but I also think the people who have read there are problems in the Water Department want to know what we are doing to address the scrap-metal issue," he said.

The scrap-metal theft allegations arose late last summer out of the gas-theft trial of former utility employee Ron Mercier. Utility employee Geoff Whitman admitted under oath to turning in scrap metal, but denied it was city scrap metal.

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Last September, the City Council approved Councilor Rita Mercier's motion calling for a police investigation of alleged criminal activity at the utility, including the potential theft of copper and brass.

At the time, Kennedy said he did not understand why utility employees "think there would be scrap metal in a Dumpster out back they think they can cash in on and collect money from."

Employees in the utility's distribution department often handle copper and brass.

Most pipes connecting water lines in city streets to homes are made of copper. The fittings for many of the copper pipes in the city are made of brass, as are water meters in the city.

Rita Mercier told The Sun she agrees with Kennedy that there needs to be a scrap-metal policy developed and enforced. She said all proceeds from city scrap metal sold should go to city coffers.

"There should be something in place outlining the things you can and can't do," said Mercier, saying the policy should apply to all excess materials the department might handle, including excess wood.

Lynch told councilors Tuesday the city does not have a specific policy for scrap metal in place. He said all materials that belong to the city but are no longer needed fall under the jurisdiction of the different city departments.

The departments are advised to follow the requirements for disposing of surplus material under Chapter 30B of state law, but Lynch told councilors he is going to have the city's purchasing agent look at how the city can formalize the process required to be followed for items like scrap metal.

Under Chapter 30B, all surplus supplies with a resale or salvage value of $5,000 or more must be disposed of through a public auction or sealed bids. Communities must also establish policies for disposing of supplies worth less than $5,000.

"We are having trouble sort of stealing some ideas from some other communities on this, because everyone just sort of follows Chapter 30B," said Lynch.

Lynch also told the council he is having the city's Human Relations department develop a code of conduct employees will agree to, and it will include telling employees not to steal. The city hopes to put the code of conduct in place within the next few weeks, said Lynch.

"I think it is unfortunate that we have to reiterate that people shouldn't steal from the city, their employer," Lynch said. "But if that is what it has to take, that is what we will do."

Kennedy said he thinks it is necessary to remind Water Department employees not to engage in theft.

"I understand that people should realize that you shouldn't be stealing regarding the scrap metal, but evidently they don't," Kennedy said.

Daniel Lahiff, the utility's executive director, did not respond to a request for comment Friday.

It is unclear how much money the Water Department has turned in to the city in recent years from scrap metal the department compiled and sold to scrap-metal outfits.

The city has yet to publicly respond to Councilor Mercier's request for the last 10 years of scrap-metal proceeds turned in to the city by the Water Department.

She has alleged utility employees only started to turn in scrap-metal proceeds to the city once it was clear the issue would be raised at the gas-theft trial last year.

Lynch told the council he is hopeful the police's scrap-metal investigation is nearing an end, but it is not there yet.

"It has required quite a bit of work on part of the Police Department and detectives involved to look at quite a number of documents," said Lynch, adding police have interviewed people both inside and outside the utility about the issue.

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